Source: Southwest Image Library

Over the past 5 trading days, all airline stocks have exhibited downward momentum. While most of the carriers were in news over regulatory disputes, JetBlue Airways (JBLU - Analyst Report) celebrated the event of its one millionth customers connecting to its high-speed Fly-Fi system. In addition, Delta Air Lines Inc.’s (DAL - Analyst Report) decision to expand business at its Los Angeles hub with the announcement of two daily flights also made headlines.                    

A Recap of Last Week’s Most Important Stories

1. Delta Air Lines is set to enhance its presence in Los Angeles further with the expected launch of twice daily flights to San Antonio, TX on and from Apr 7, 2015,  in addition to its Dallas service slated to start this fall. (Read More: Delta Air Lines to Expand Los Angeles Hub with New Flights)

2. Earlier in the week JetBlue Airways celebrated its one millionth customer connecting to its high-speed Fly-Fi system. The landmark achievement makes JetBlue the first airline globally to connect one million personal electronic devices (PEDs) to broadband Ka-based Wi-Fi service.

3. Air France-KLM SA (AFLYY) has been reportedly facing pressure from its AFLYY pilots over management’s proposal of expansion of its low-cost subsidiary operations and related negotiations. The company is currently under the threat of an indefinite strike, which is driving significant revenue losses and has already affected passenger services to quite an extent.

4. Further, American Airlines also entered into negotiation with the Association of Professional Flight Attendants and reached a tentative settlement regarding a new joint collective bargaining agreement covering over 24,000 flight attendants.

5. In addition, United Continental Holdings Inc. (UAL - Analyst Report) settled its regulatory disputes related to Continental Airlines. The latter was charged of discriminated against employees who were permanent residents of the U.S., but weren't holding any citizenship. The company has now agreed to pay a penalty of $215,000 and set up a $55,000 fund to pay back lost wages to the affected workers. The company will also follow a training pertaining to anti-discrimination provisions of immigration law.

Performance       

The following table shows the price movements of the major airline players over the past 5 trading days and during the last 6 months:

Over the trailing 5 sessions, all airline stocks reflected a negative trend. The biggest losers for the period were Hawaiian Holdings Inc. (HA - Snapshot Report) and GOL Linhas (GOL - Analyst Report) with 6.6% and 6.4% decline in share prices, respectively.

Over the past 6 months, on the other hand, most of the stocks have fared reasonably well except for Copa Holdings, Alaska Air Group, Inc. (ALK - Snapshot Report) and American Airlines Group Inc., which dropped 17.3%, 2.3%, 1.9%, respectively. The biggest gainers in the 6-month span were Southwest Airlines and GOL Linhas, sporting growth of 44.1% and 27.6%, respectively.

What’s Next in the Airline Biz?

In the current week, we foresee no significant changes in the airline industry and global economic factors. As a result, we expect the stocks to trade in line for the remainder of this week.